Astronomical images have some rather unusual characteristics that make many existing image compression techniques either ineffective or inapplicable. A typical image consists of a nearly flat background sprinkled with point sources and occasional extended sources. The images are often noisy, so that lossless compression does not work very well; furthermore, the images are usually subjected to stringent quantitative analysis, so any lossy compression method must be proven not to discard useful information, but must instead discard only the noise. Finally, the images can be extremely large. For example, the Space Telescope Science Institute has digitized photographic plates covering the entire sky, generating 1500 images each having 14000 x 14000 16-bit pixels. Several astronomical groups are now constructing cameras with mosaics of large CCD's (each 2048 x 2048 or larger); these instruments will be used in projects that generate data at a rate exceeding 100 MBytes every 5 minutes for many years. An effective technique for image compression may be based on the H-transform (Fritze et al. 1977). The method that we have developed can be used for either lossless or lossy compression. The digitized sky survey images can be compressed by at least a factor of 10 with no noticeable losses in the astrometric and photometric properties of the compressed images. The method has been designed to be computationally efficient: compression or decompression of a 512 x 512 image requires only 4 seconds on a Sun SPARCstation 1. The algorithm uses only integer arithmetic, so it is completely reversible in its lossless mode, and it could easily be implemented in hardware for space applications.

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